Location: Worth County, IA | Metro: Winnebago County, IA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $720 |
| 1 Bedroom | $790 |
| 2 Bedrooms | $990 |
| 3 Bedrooms | $1,330 |
| 4 Bedrooms | $1,420 |
| 5 Bedrooms | $1,647 |
| 6 Bedrooms | $1,845 |
| 7 Bedrooms | $1,993 |
| 8 Bedrooms | $2,093 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-08-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $990 | $143,316 | 0.69% | D |
| 3BR | $1,330 | $204,518 | 0.65% | D |
| 4BR | $1,420 | $243,744 | 0.58% | F |
U.S. Census Bureau data (2024)
13.9% of Northwood, IA's population in ZIP code 50459 are renters, indicating a modest demand for rental properties. However, the $980 Fair Market Rent (FMR) for the metro area in fiscal year 2026 stands significantly higher than the $738 reported by the Census ACS for the same region, suggesting that Section 8 vouchers could cover a substantial portion of the market rent. This discrepancy between FMR and market rent means that landlords can potentially secure stable tenancy without the risk of under-renting their properties.
The median home value in Northwood, IA is $200,132, which reflects the overall economic status of homeowners in the area. Given the median income of $71,618, it's evident that many residents might find it challenging to afford homeownership, thereby increasing the reliance on rental housing. The absence of specific data regarding days on market (DOM) and the percentage of price-cut share indicates a lack of detailed insights into property turnover rates and price adjustments, but the existing figures suggest a relatively stable market.
Investors should note that while the $738 market rent is lower than the FMR, the gap between these two figures provides an opportunity for landlords to benefit from the Section 8 program. With the FMR at $980, landlords can expect to receive a competitive rental rate through the voucher program, ensuring a steady income stream. Additionally, the program's structure offers protection against non-payment, as the government guarantees the payment of the voucher amount.
In conclusion, the data from ZIP code 50459 points towards a favorable environment for landlords and small-portfolio investors interested in participating in the Section 8 program. The higher FMR compared to the market rent and the median income levels support the viability of this investment strategy. The verdict for Section 8 in Northwood, IA is positive, offering a reliable and stable rental option for both tenants and landlords.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-08-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.